Ron Mesia, Circuit City Supply Chain Manager finds his profit at $15,000 as show

Ron Mesia, Circuit City Supply Chain Manager finds his profit at $15,000 as show

Oct 1st, 2015

Anonymous

Category:

Other

Price: $5 USD

Question description

Ron Mesia, Circuit City Supply Chain Manager finds his
profit at $15,000 as shows below, he consider that it is inadequate for
expanding his business.

Bank of America is insisting on an improved profit picture
prior to approval of a loan for some new equipment. Ron would like to improve
the profit line to $25,000 so he can obtain the bank’s approval for the loan.

What percentage improvement is needed in a Cost
of Material Strategy for the profit to improve to $25,000? Sales, Other
Production Cost, and Fixed Cost will remain the same.

What percentage improvement is needed in Sales
for the profit to improve to $25,000? Cost of Material, Other Production Cost,
and Fixed Cost will remain the same.